Prudential Looks to $10 Billion in 2006

Though 2005 was a record breaker, Prudential wants to out do themselves in 2006. They are looking to originate more than $10 billion in loans across their growing range of capital sources. Prudential Financial, Inc. is the parent company of Prudential Mortgage Capital. The end of 2005 also shows a 17% growth in origination volume and continues to expand its business with growth across its major capital sources. The growth from $3.3 billion in 1999 is accredited to new products and loan programs. The companies new affordable housing effort drew in $302 million, with floating rate loans netting $912 million and fixed/floating rate loans bringing in $360 million.

Offering flexibility and highly structured deals helped Prudential to be competitive in the race that was the 2005 mortgage market. By offering loans secured by portfolios of properties split amid a variety of capital sources, Prudential can carve a niche for itself. The company offers a full service finance business, Fannie Mae originated financing and FHA-insured programs, capital markets and other institutional investors. Though 2006 looks to be even tougher for lenders, the array of financing options, as well as many different types of loan products itself, is the drive behind Prudential’s mark of $10 billion by the end of the year.